Interim Budget 2019: Here's what all you can expect today

If rumours are to be believed, the interim budget could provide various tax benefits to the salaried middle class.

ET Online|

Updated: Feb 01, 2019, 09.33 AM IST

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Maximum limit under Section 80C was hiked in 2014 by Rs 50,000 to Rs 1.5 lakh.

Acting Finance Minister, Piyush Goyal, is all set to present the interim budget 2019 in Parliament today. And with this being the last budget before the general elections in April-May of this year, many taxpayers are hoping for good news on the personal taxation front.

If rumours are to be believed, the interim budget could provide various tax benefits to the salaried middle class. According to ET Now report, some of the options considered by the Narendra Modi government are hiking the savings limit, tax benefits for pensioners and concessions on housing loans.

Here's all what you can expect from today's interim budget.

Increase in tax-exemption limit

IANS has previously reported that minimum tax exemption limit for the salaried class may be doubled from the current Rs 2.5 lakh to Rs 5 lakh. It may also re-introduce the medical reimbursement and transport allowance to provide additional tax relief for the middle class. If this does happen, then it would mean more disposable income for taxpayers.

Hike in section 80C limit

Along with an increase in the minimum tax-exemption limit, it is expected that the interim finance minister might also increase the deduction limit under section 80C. Currently, one can avail the maximum deduction of Rs 1.5 lakh in a fiscal year to save income tax.

Maximum limit under Section 80C was hiked in 2014 by Rs 50,000 to Rs 1.5 lakh.

More concession on housing loans

If this does get announced, it be another big one. Many are hopeful that the deduction available on the interest paid on housing loans is going to be hiked. Currently, a taxpayer can avail a deduction of Rs 2 lakh on interest paid on home loan under section 24 along with the deduction on principal repayment under section 80C. This limit was also raised five years ago by Rs 50,000 from Rs 1.5 lakh to Rs 2 lakh.

Reintroduction of transport allowance and medical reimbursements

In Budget 2018, standard deduction of Rs 40,000 was introduced for salaried class in lieu of medical reimbursement tax exempt up to Rs 15,000 and transport allowance tax exempt up to Rs 19,200.

However, industry chamber CII in its pre-budget recommendations has recommended that exemptions for reimbursement of medical expenses and transport allowance to be reinstated along standard deduction of Rs 40,000.